Pit stop: Revenue is set to slow as supermarkets drive strong price-based competition

The Olive Growing industry is highly fragmented and includes numerous small hobby farms and olive producers that do not have a strong brand and grow fruit for the bulk olive oil market. The industry also includes large vertically integrated companies that supply table olives for supermarkets, target export markets and manufacture olive oil. As a result, the scale of olive production varies significantly among operators.Olive production has been volatile over the past five years. Firms that grow olives depend on optimal growing conditions. As olives are water-intensive, annual rainfall and water availability influence production. As rainfall and water extraction levels are typically volatile, industry revenue often fluctuates from year to year...read more.

Industry Statistics & Market Size
Revenue
$114m
Annual Growth 14-19
4.1%
Forecast Growth 19-24
Profit
Employment
1,377
Businesses
829
Market Share of Companies

Industry Threats & Opportunities

  • Farmers face competition from imports of downstream final products such as olive oil
  • The biennial nature of olive growing strongly affects the industry’s major player, Boundary Bend
  • Growing demand for domestic olives is expected to encourage industry participation
  • Industry Report - Industry Products Chapter

    Operators in the Olive Growing industry produce only one product: olives. These may be one of many varieties, such as frantoio, arbequina and manzanillo. Harvested olives can rarely be eaten without some form of processing as they are extremely bitter. As such, olive production has been segmented according to the intended use of the harvested olives. Most industry produce is destined for use in olive oil. Between four and five kilograms of harvested olives make one litre of olive oil. There are two broad types of olive oil: refined and unrefined.Olives for unrefined oilUnrefined oils account for the majority of olive oil production as they typically attract higher prices and profit margins. Unr...purchase to read more.

    Additional Insights for the Olive Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Olive Growing are:

  • Appropriate climatic conditions
  • Output is sold under contract - incorporate long-term sales contracts
  • Availability of irrigation water
  • IBISWorld analysts also discuss how external factors such as Demand from cooking oil and margarine manufacturing and Availability of water in the Olive Growing industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from cooking oil and margarine manufacturing
  • Availability of water
  • Health consciousness
  • Level of annual rainfall
  • Trade-weighted index

  • Current Performance
  • Consumer consumption
  • Trading conditions
  • Changing operations
  • Industry cost structures
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption trends
  • Challenges
  • Profit and participation
  • Table: Olive Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Olive Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Processing
  • Fruit and Vegetable Wholesaling

  • Key Selling Industries
  • Livestock and Other Agricultural Supplies Wholesaling
  • Shearing, Cropping and Agricultural Support Services
  • Water Supply

  • Products & Services
  • Olives for unrefined oil
  • Olives for refined oil
  • Olives for consumption
  • Olives for food processing
  • Chart: Olive Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Food processors
  • Other markets
  • Chart: Major Market Segmentation for the Olive Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Olive Growing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Olive Growing Industry

  • Industry Globalization
    Boundary Bend Limited,
  • Table: Boundary Bend Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Olive Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Olive Growing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Extra-Virgin Olive Oil
  • The highest quality oil that can be produced from olives. Extra-virgin olive oil attracts higher prices and margins for farmers.
  • Farmgate Prices
  • The price the farmer receives for their produce.
  • Wholesale Bypass
  • Where primary producers interact directly with processors or retailers, eliminating the need for wholesale services.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Olive Growing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Olive Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Olive Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Olive Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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